At the upper end of the price band, Company demands PE multiple of 22.1x on F.Y.20 basis. None of the listed chemical companies has the same business as Chemcon. Its specialty chemical peers such as Neogen Chemicals, Paushak, Atul and Aarti Industries are currently trading at P/E multiples of 57.0x, 37.6x, 29.6x and 35.6x respectively on FY20 EPS. Company return ratios and margins are better than most of its peers. We believe Company is clearly undervalued compared to its peers; a lot of value is left in the table. As we are positive on the future outlook for the industry as well as the company, we would recommend to “Subscribe” issue for long term as well as for listing gains.

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